Safety and Shipping Review

Our annual review of trends and developments in shipping losses and safety

The Safety and Shipping Review 2018 focuses on key developments in maritime safety and analyzes shipping losses (of over 100 gross tons) during the 12 months prior to December 31, 2017. It also identifies some of the key risk management challenges the industry faces moving forward.

The Safety and Shipping Review from Allianz Global Corporate & Specialty (AGCS) is our annual report identifying the latest trends and key developments in maritime safety.

Shipping is the lifeblood of the global economy, transporting approximately 90% of global trade. There are over 50,000 merchant ships trading internationally, carrying every kind of cargo, so the safety of vessels is critical. The maritime industry saw the number of total shipping losses remain stable during 2017, declining slightly to 94 – the second lowest total over the past decade.
 
Losses were down 4% compared with a year earlier (98); current figures show a significant improvement on the 10-year loss average (113) – down 17%. Over the past decade, total losses have declined by more than a third (38%), driven by improved ship design, technology and advances in risk management and safety. Recent lower shipping activity is also a factor.
Capt. Andrew Kinsey, Senior Marine Risk Consultant - Allianz Risk Consulting, joins the AGCS Podcast to discuss the findings of the sixth annual Safety & Shipping Review.
Download the report

There were 94 losses in 201; 21 losses that came from bad weather.

$1.6bn cost of losses resulting from human error, based on analysis of 15,000 marine insurance claims.

Friday is the most frequent day for shipping losses over the past decade (175) with Saturday (143) being the safest day at sea. Friday 13th can be unlucky with five ships lost, including three on January 13, 2012 – one of which was Costa Concordia.

November is the busiest month for losses (36) in the top hotspot over the past decade – South China, Indochina, Indonesia and Philippines; a third were directly caused by typhoons (12).

Annual survey identifying business risks

Technology is breeding new threats as well as business models. Traditional risks such as natural catastrophes continue to challenge while other threats such as cyber, neck-and-neck with business interruption at the top of the Allianz Risk Barometer 2019 for the first time, reputational risk, increasing exposure to intangible assets and volatility and consolidation in the corporate environment evolve daily.

Top 3 risks in the Marine & Shipping sector in 2019

  1. Natural catastrophes (34%) - 2018 rank: 1 (34%)
  2. Cyber incidents (32%) - 2018 rank: 2 (31%)
  3. Market developments (28%)  
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